Bayer says a three-year production reorganization will modernize its manufacturing network and streamline its supply chain, but specific details remain scarce.
The Germany-headquartered biopharma firm announced “it is strengthening the production network of its pharmaceutical division” yesterday through a three-year, €2 billion ($2.2 billion) restructure plan.
According to the release, “Bayer is planning to invest in its core manufacturing plants and strengthen their operational responsibilities to sustainably support the implementation of the company’s strategy for its pharmaceuticals business. A significant part of these investments will be made for enhanced capacities in biotechnology, further strengthening the company’s cell and gene therapy production as well as in the expansion of its manufacturing site in Berkeley.”
Bayer has previously announced plans to invest $1.2 billon at its 46-acre campus in Berkeley, California over the next 30 years, and separately confirmed a $200 million Cell Therapy Launch Facility at the site last year.
However, it is unclear whether this latest announcement incorporates these ongoing projects, with a spokesperson not disclosing details as to how the €2 billion will be used for now.
“The investments mentioned are part of a comprehensive transformation program. They include modernizations in various areas,” the spokesperson told BioProcess Insider. “Investing in modernization means always investing in the future. We do this consciously in order to promote sustainability and to substantially upscale our pharmaceutical manufacturing.”
While investing in some sites, Bayer is planning to shutter others, specifically on the small molecule side.
“The company has already divested its production plant in Karachi, Pakistan,” the company stated. “To continue strengthening the competitiveness of its manufacturing capabilities by focusing on core activities and technologies the company’s manufacturing plant in São Paulo Cancioneiro, Brazil, will be transferred to a new operator. In addition, Bayer is planning to transfer parts of the infrastructure and services at the German sites in Bergkamen, Wuppertal and Berlin to external partners.”
When asked for more details about Bayer’s balance between inhouse and third-party manufacturing, the spokesperson said: “We are continuously reviewing and adjusting our network to focus on key production sites and platform technologies to make the network competitive, agile and lean. We already are balancing out internal and external manufacturing to improve our supply chain set-up.”